EFishery confirms alleged fraud, FTI Consulting takes over

EFishery co-founder Gibran Huzaifah / Photo credit: eFishery

The board of Indonesian aquatech unicorn eFishery has confirmed allegations of misconduct, including fraud, within the company.

In a statement, eFishery’s board of directors said it has taken swift action to address the issue.

FTI Consulting will immediately take over as the startup’s acting management, following shareholder approval.

“The involvement of independent third-party management aims to facilitate a thorough and objective business review to determine the best path forward for the group,” the statement said.

EFishery added that it had to make several “difficult decisions” to align its operational costs with the group’s “actual business scale.”

The number of employees facing layoffs remains unclear.

“As we navigate the situation, we will continue to act with integrity and take care of our employees in accordance with applicable laws,” the board said.

The board also noted that the situation could “jeopardize confidence in Indonesia’s investment climate.”

EFishery has been grappling with a deepening crisis. In December 2024, it launched an internal probe into allegations of financial fraud. Co-founders Gibran Huzaifah and Chrisna Aditya stepped down following the investigation.

A Bloomberg report revealed that according to the ongoing investigation, management had inflated revenue by nearly US$600 million in the nine months through September 2024.

A draft audit report of eFishery that surfaced last week revealed more troubling details, identifying several senior executives as “implicated employees” in the alleged fraud.

EFishery hit unicorn status in 2023 and expanded to India in 2024.

See also: More eFishery senior execs ‘actively involved’ in fraud: audit